Liverpool chief Damien Comolli regards Diego highly and sees the Brazilian as the creative spark the Reds midfield has been missing.

Diego, himself, declared last week he was excited by the interest of Liverpool.

Meanwhile, despite the sacking of Carlo Ancelotti late on Sunday, Chelsea are also thought to be keen on the 26-year-old playmaker and are interested in bringing the £15 million-rated talent to Stamford Bridge.